Electricity Deregulation in Lubbock, TX | Choose Your Energy Rate
Electricity deregulation is coming to Lubbock, Texas, which means you have the power to choose your retail energy supplier. Here's what you need to know before you make the switch!
(UPDATED DECEMBER 18 2023)
The Retail Integration Task Force for Lubbock Power & Light (LP&L) presented a new and improved timeline that proposes a "market go-live period" for retail electric choice from March 4, 2024, through April 2, 2024.
Under this timeline revision the initial customer choice selection period would run from January 5, 2024, to February 15, 2024.
Also, under this revision, electricity customers that do not make a retail electricity choice during this period would be assigned to a default service provider during the period February 19, 2024, through March 1, 2024.
The actual migration to retail choice for LP&L customers would occur with on-cycle meter readings from March 4, 2024, through April 2, 2024.
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The city of Lubbock, Texas has been gearing up for electricity deregulation since last year, but it seems they'll need to exercise some patience. In February 2022, the city council made an unanimous decision to transition the city of approximately 261,000 residents into a competitive energy market, granting them the choice to select from a range of approved energy retailers.
The initial schedule aimed at allowing residents to choose their energy provider in August, with the official transition occurring in October. However, these plans encountered an unexpected obstacle. In April, a consortium of energy cooperatives from Texas and New Mexico raised concerns about the $77.5 million settlement that LP&L had agreed to pay for its exit from the Southwest Power Pool's electrical grid. They contended that this agreement did not offer adequate protection against potential financial repercussions.
The Federal Energy Regulatory Commission, responsible for approving the plan, requested an extension to conduct a more thorough review of LP&L's application. Consequently, the ultimate transfer of customers to ERCOT has experienced delays. Although there isn't a fixed deadline, records presented during an Electricity Utility Board meeting in May indicated that the selection period is now anticipated to commence in the first quarter of the following year, possibly as early as January 2024.
According to the original timetable, customers would then begin receiving services from their new providers by March.
Is Lubbock, TX electricity deregulated?
Yes, the city of Lubbock, TX has officially voted to be deregulated.
Why did Lubbock, TX switch to ERCOT?
In order to give electric customers in Lubbock, TX more control over their electricity consumption, the city began exploring the move into ERCOT, and out of the Southwest Power Pool, in 2015.
Until May 2021, the city of Lubbock was part of the Southwest Power Pool (SPP) electric grid. The SPP operates as a grid providing electricity to Midwestern states like Kansas, Nebraska, the Dakotas, and a small portion of Texas. Lubbock Power & Light (LP&L) played a central role in supplying electricity to the city by distributing power from the SPP.
Owing to contractual obligations with the SPP, Lubbock faced the necessity of constructing a new power plant for energy generation. The estimated cost of this undertaking was several hundred million dollars, if not more. Additionally, the project would lead to an increase in electricity prices in Lubbock for several decades to recover the expenses associated with constructing the power plant.
In addition to the construction of the new power plant, the Lubbock City Council had an alternative option: deregulation. By transitioning to the ERCOT grid, Lubbock could join the extensive group of deregulated cities in Texas.
In a press release from the City of Lubbock:
"Today, Lubbock City Council voted in favor of transitioning Lubbock Power & Light (LP&L) to the competitive electric market in Texas. The City Council vote was the last step required for LP&L to begin necessary work to move to retail competition following the Electric Utility Board’s vote last week. LP&L hopes to transition to competitive retail electric service in late 2023 pending state regulatory approval to move all remaining customers into the ERCOT market.
Under the future competition model, LP&L will no longer serve as the city-owned electricity provider. Instead, customers can “shop” from multiple retail electric providers, each offering their own plans, pricing and contract terms. The retail providers will be responsible for buying and selling power, while LP&L will continue to own and maintain all transmission and distribution infrastructure, such as poles and lines.
After years of careful preparation and planning, we can turn to citizens and officially say–we heard you loud and clear, and electric competition is on the way.” said Mayor Dan Pope. “All of the work up to this point and going forward not only gives customers control over their energy choices, it ensures a diverse electricity supply well into the future as our city and energy needs continue to grow. I could not be more proud to be a part of this historic decision.”
Will the competitive electricity market in Lubbock affect other utilities?
No, only electric service through LP&L will be affected by the transition to retail electric competition. Furthermore, the deregulation of electricity in Lubbock will not have any bearing on the services provided by City of Lubbock Utilities. These utilities will persist in offering essential services such as water, stormwater management, wastewater treatment, and solid waste management to the community.
What will my electricity bill look like?
Approved Retail Electric Providers in Lubbock, TX
How Ananta Energy Can Help You Save Money On Your Lubbock Electric Bills
If you've been a long-time business owner in Lubbock, chances are you haven't had to think much about choosing the best electricity plan or understanding terms like 'kilowatt hour' or 'fixed-rates.' In the past, you simply paid the rate offered by Lubbock Power & Light. However, with the current competitive market, you now have the opportunity to choose your energy provider.
That's where we come in. With our industry expertise, we've built relationships with the most reputable energy providers in Texas. Contact us now to learn how we can save you money on your business electricity bills.
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